Aside from the big opening bonus, cardholders would also be treated to 1.5 points per dollar on all purchases, aligning it with the likes of Chase Freedom Unlimited and Capital One’s Quicksilver.

The difference is that the Bank of America Premium Rewards card would have a 2X category as well, for travel and dining. It’s a broad category, and arguably one consumers use a lot. So that separates it from the crowd somewhat.

Assuming cardmembers couple it with the bank’s “Preferred Rewards” program, the points can go even further. Here’s where it gets interesting.

For those with $20,000 to $50,000 in Bank of America deposits, they’ll earn 2.5 points per dollar on travel and dining and 1.875 points on all other eligible purchases

For those with $50,000 and $100,000 in BofA deposits, they’ll earn 3 points on travel and dining and 2.25 points on all other eligible purchases

For those with more than $100,000 in BofA deposits, they’ll earn 3.5 points on travel and dining and 2.6 points on all other eligible purchases

The big problem here is that the bank probably pays a minuscule yield on deposits, so you’re giving up a lot of interest in exchange for slightly higher credit card rewards.

Whether that’s worth it is the big question. One could argue to keep your money at a bank where it earns the most money and use a credit card that earns solid rewards, even if they aren’t quite as high as this offering.

This is especially true if you can get more out of the points by transferring them out to loyalty partners where the points are worth a lot more than a penny apiece.

What Else Might the new BofA Card Offer?

Expectations call for some sort of travel credit, similar to Amex Platinum and Chase Sapphire Reserve, along with a credit for TSA Pre or Global Entry.

In a sense, that means the new card would be a sort of Sapphire Reserve and Freedom Unlimited hybrid, though lacking the very important Ultimate Rewards program.

However, those watching this card expect the annual fee to be a lot lower than the competition, perhaps no more than $100 per year, compared to $450 for CSR and $550 for the revamped Amex Platinum.

We now know the annual fee on the Bank of America Premium Rewards credit card will be just $95, the same as Chase Sapphire Preferred.

So Bank of America will surely win a lot of new customers scared off by those sky-high annual fees, but it might also challenge the profitability of the card.

Giving away $500 or more in value and charging less than $100 doesn’t sound like a good deal for the bank. But they wouldn’t be the first ones to do it.

Heck, the Chase Ink Preferred comes with $800+ in value for a $95 annual fee.

While the forthcoming luxury card from Bank of America may not be earth-shattering, it could be an easy target to earn a nice sign-up bonus.

And because it’s not a Chase card, those over 5/24 will be able to apply, which is handy for those running out of good options.

Bank of America has a $300 checking account bonus too, but with it being taxed it’s kind of not worth all the effort.

Stay tuned for more on this one…

Author: Colin Robertson

Colin created this blog after spending several years in a job that required him to scour credit reports on a daily basis. His goal is to help individuals better understand their credit and get the most out of credit cards.
View all posts by Colin Robertson